Government Subsidy, Venture Capital And Technological Innovation Of Enterprises

After 40 years of reform and opening up,China's economy has changed from a stage of high-speed growth to a stage of high-quality development.Innovation is the first driving force for leading development and a strong driving force for promoting high-quality development.As the main body of innovation,enterprises play a major role in technological innovation..Because of the spillover of innovation knowledge,the cost of innovation is greater than the profit,which leads to the decline of innovation intention.At the same time,due to the large investment,long cycle and high risk of innovation activities,enterprises often face serious financing constraints in carrying out innovation activities,which leads to the lack of innovation investment.As the most direct government intervention policy,government subsidy eases the financing constraints of enterprises,makes up for the loss of innovation knowledge spillover,and improves the enthusiasm of enterprises' innovation.However,due to the imperfection of the evaluation mechanism of government subsidies and the lack of supervision of the innovation process,government subsidies also bring about adverse selection and moral hazard problems.With its professional background knowledge and investment experience,the market-oriented venture capital enriches the financing channels of enterprises,and at the same time,it can bring more value-added services to enterprises,participate in the operation and management of enterprises,and enhance the competitiveness of enterprises.In this context,this paper studies the impact of government subsidies and venture capital on technological innovation of enterprises,which has important practical significance for enterprises to use government subsidies and introduce venture capital for technological innovation.In this paper,567 listed companies in GEM from 2009 to 2018 are selected as research samples to study the impact of government subsidies and venture capital on technological innovation of enterprises by combining normative research and empirical research.Firstly,the theories of market failure,signal transmission,incomplete contract and certification supervision are introduced.Then,based on the basic theories,this paper analyzes the influence mechanism of government subsidies,venture capital and their synergy on technological innovation of enterprises,and puts forward research hypotheses accordingly.According to the research hypothesis,the negative binomial regression model is constructed to test the corresponding research hypothesis.Finally,the two-stage Heckman model and the method of replacing the main variables are used to test the robustness of the empirical results.The results show that:(1)There is a significant positive correlation between government subsidies and the number of patent applications.This is mainly due to the fact that government subsidies alleviate the financing constraints of enterprises,enhance the innovation enthusiasm of enterprises,and enhance the innovation ability of enterprises;at the same time,government subsidies release favorable signals to the outside world,play a leverage role,guide more social capital participation,and broaden the financing channels of enterprises.(2)Venture capital is positively correlated with the number of patent applications.By providing innovation capital,venture capital ensures the sustainability of innovation activities,optimizes the corporate governance structure,improves the incentive mechanism of enterprises,and reduces the agency cost of enterprises.Venture capital plays the role of value-added,provides a series of non monetary value-added services,and promotes the technological innovation of enterprises.(3)Venture capital plays a positive role in promoting the relationship between government subsidies and technological innovation of enterprises.And the higher the shareholding ratio,the more obvious the role of joint investment and state-owned background venture capital in promoting the relationship between government subsidies and technological innovation.Venture capital participation can supervise enterprises to make better use of government subsidies for innovation activities,and improve the utilization efficiency of government subsidies.The higher the shareholding ratio is,the stronger the discourse power of venture capital in the operation of the enterprise is,and the greater the degree of preparation;joint investment can provide better value-added services through complementary advantages;state-owned background venture capital has alarger scale and stronger risk tolerance.Therefore,the higher the shareholding ratio,joint investment and state-owned background of venture capital can promote enterprises to use government subsidies for innovation activities.Finally,based on the conclusion of this paper,the paper puts forward relevant policy suggestions from the three aspects of government policy support,venture capital and enterprises,in order to play a better synergy between the government and the market,jointly promote the technological innovation of enterprises,and enhance the innovation ability of enterprises.Finally,it points out the shortcomings of this study and the future research direction.